Credit card issuers and insurers have agreed to improve the information they disclose about travel cover provided through their cards.

It follows an Australian Securities and Investments Commission (ASIC) review of 17 credit card brands, including those of the big four banks, in response to consumer complaints and disputes data published by the Financial Ombudsman Service.

Common complaints include uncertainty about who is covered by policies, the extent of exclusions and eligibility requirements.

Card issuers and their insurers have agreed to clarify when cover is “activated”, such as when a minimum spend threshold must be met to enable coverage; clarify if and when use of reward points to pay for travel costs will activate insurance; clarify whether supplementary cardholders can benefit from a policy; and provide clearer information about the documentation needed to make claims.

ASIC Deputy Chairman Peter Kell says improved disclosure will help consumers understand their entitlements. “Credit card issuers and insurers must clearly set out what is and what is not covered by a policy so consumers can work out if they are adequately covered.”